Investigation into Union Corruption Expands to GM
Aug. 27, 2019—A federal investigation into alleged misuse of dollars designated for employee training has expanded to General Motors, according to CNBC.
There has been a multiyear federal probe into misuse of training dollars by Fiat Chrysler and United Auto Workers. According to the report, Michael Grimes, a retired senior official with the union’s GM division, has been charged with wire fraud and money laundering for allegedly receiving $2 million in kickbacks from UAW vendors.
Prosecutors did not identify any GM executives as being involved in the corruption, as they did with FCA.
In a statement, GM called the alleged conduct of Grimes and other union officials “deeply disturbing” and said it is “fully cooperating” with the investigation.